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Nadec swings to Q3 net profit; regional sales up 1.7pc

JEDDAH, October 21, 2021

The National Agricultural Development Company (Nadec), a leading Saudi agricultural and food-processing company, has announced solid Q3 results for the third quarter mainly driven by the regional sales, which grew 1.7 per cent. 
 
Announcing its financial results for the period ended September 30, Nadec said its net profit for the July to September period hit SR3.21 million (854,806) compared to a net loss of SR45 million ($12 million).
 
The company’s revenue for the current quarter increased by 0.72% compared to the similar quarter last year. This was mainly on the account of increased sales of dairy and food processing sector by 1.7% partially offset by a decrease in the sales of the agricultural sector by 14.27%.
 
According to Nadec, the selling and marketing expenses decreased in the current quarter compared to the similar quarter last year by 11.87% mainly on the account of lower spending on marketing and promotional activities.
 
Also the the impairment losses on trade receivables fell by SR1.2 million during the current quarter when compared to the last year.
 
Despite the changes in preceding elements that positively impacted the net profit of the company in the current quarter, there are other elements that negatively impacted the net profit of the current quarter as follows:
 
Cost of sales percentage on revenue was increased during the current quarter by 0.97% compared to the similar quarter last year mainly on the account of the increase in the animal feeding costs.
 
Nadec said the general and administrative expenses increased by 2.41% compared to the similar quarter last year mainly on the account of increase in professional consultancy charges for new projects and Information Technology expenses. This increase was partially offset by a reduction in employee cost.
 
Other expenses increased in the current quarter by SR8.09 million compared to the similar quarter last year mainly on the account of increase losses on the sales of biological assets due to higher cow culling.
 
The Saudi group said its revenue for the current quarter increased by 10.09% compared to the previous quarter. This was mainly on the account of growth in sales of dairy and food processing sector by 7.38% and increase in the sales of agricultural sector by 102.42%.-TradeArabia News Service



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